Crude Oil Price Forecast – Crude Oil Continues to Build Pressure

Crude Oil Prices Forecast Video for 08.08.23

WTI Crude Oil Technical Analysis

The West Texas Intermediate Crude Oil market displayed notable strength during Monday’s trading session, as it rallied in an attempt to break above the crucial $82.50 resistance level. This area has proven significant in the past, and a successful breach could pave the way for a potential move towards the $85 level. Despite short-term pullbacks being expected, they are more likely to present buying opportunities, with solid support at the $80 level. Additionally, the 200-Day Exponential Moving Average beneath the support zone also provides an attractive buying opportunity for investors.

In the event of a breakout above the $82.50 level, the $85 price point becomes the initial target, with further gains potentially leading to a longer-term objective at $90. Recent developments indicate that Saudi Arabia is willing to extend its voluntary 1 million barrels per day production cut, aiming to tighten the supply of crude oil in the market. This move could create a scenario with increased market noise, but it is likely that there will be willing buyers seeking to capitalize on any price dips, thus reinforcing a “buy on the dips” sentiment in the market.

Brent Crude Oil Technical Analysis

Brent markets also experienced a slight rally during Friday’s trading session, edging closer to the resistance level at $87.50. This price point has acted as a barrier in the past, and it is expected that it will be tested again in the near future. A successful breach above $87.50 could signal further upward movement, possibly pushing towards the $90 level. However, the $90 level may prove to be a significant hurdle due to its psychological importance and the presence of options barriers.

The overall sentiment for oil appears bullish, with indications pointing towards further upside potential. The 200-Day EMA, which lies just below the current levels, is likely to attract buyers seeking to enter the market or add to their positions. This support reinforces the notion that the market is inclined to move higher.

Ultimately, both WTI Crude Oil and Brent markets are showing bullish momentum, driven by the possibility of tightening oil supply through Saudi Arabia’s production cuts. While resistance levels at $82.50 and $87.50 present challenges, the presence of supportive factors such as the $80 level and the 200-Day EMA suggests a positive outlook for the oil markets. Investors should closely monitor price movements and any potential breakouts above resistance levels, which could lead to further gains. Nonetheless, given the inherent volatility of the oil market, investors should exercise prudent risk management strategies to navigate potential fluctuations successfully. As developments unfold, traders must remain attentive to market dynamics and be prepared to capitalize on potential buying opportunities amidst bullish sentiment in the crude oil markets.

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